E-mini S&P 500 Index (ES) Futures Technical Analysis – Strong Over 2786.00, Weak Under 2765.50

June E-mini S&P 500 Index futures are expected to open lower based on the pre-market trade. The selling is being fueled by concerns over the reopening of the U.S. economy as well as renewed tensions between the United States and China over who is to blame for the outbreak of the coronavirus.

At 14:26 GMT, June E-mini S&P 500 Index futures are trading 2804.75, down 17.00 or -0.60%.

Airline shares were the biggest losers in the S&P 500 in the premarket. Delta, United Airlines, American Airlines and Southwest Airlines all lost more than 9%, while plane maker Boeing dropped 4%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 2965.00 on April 30. A trade through 2717.25 will change the main trend to down.

The main range is 3397.75 to 2174.00. Its retracement zone at 2785.75 to 2930.25 is controlling the longer-term direction of the index.

The intermediate range is 3131.00 to 2174.00. Its retracement zone at 2765.50 to 2652.50 is the next downside target zone.

The main support is a price cluster at 2785.75 to 2765.50. The entire tone of the market could change if this area fails as support.

The minor range is 2717.25 to 2965.00. Its 50% level or pivot at 2841.25 will be resistance early in the session.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index the rest of the session on Monday is likely to be determined by trader reaction to 2786.00 and 2765.50.

Bullish Scenario

A sustained move over 2786.00 will indicate the presence of buyers. If this can create enough upside momentum then look for a surge into 2841.25. This is a potential trigger point today to trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 2786.00 will signal the presence of sellers. This could drive the index into the main bottom at 2717.25. If this fails then the trend will change to down. This should lead to a test of 2652.50. This is the trigger point for an acceleration to the downside.